“October’s flash PMI reading continues to recover for the second month, thanks in part to a gradual improvement in the new orders index, which picked up to a six-month high (albeit marginally below 50),” HSBC economist Hongbin Qu said in a note accompanying the data.

Qu said China’s policy-easing measures were now filtering through to the economy, and the results were surfacing in the data.

Among leading sub-indexes, readings for output, new orders and new export orders all indicated contraction, but their pace of decline slowed from levels in the prior month..

Brzezinski talks foreign affairs

(8:04)

Former National Security Advisor Zbigniew Brzezinski says he found little difference between Romney and Obama's foreign policy in the debate. Photo: Getty Images.

Both input and output prices were on the rise, reversing from deflationary conditions a month earlier.

Among the weak spots in the report, employment conditions and backlogs both pointed to accelerating deterioration.

Market commentator Andrew Sullivan said in Hong Kong that the data showed overall improving conditions, which would reduce chances of further monetary stimulus to help kick-start growth in the near term.

Sullivan said policy makers would likely want to give more time for the current approach, which appeared driven by “easing policies already in place,” rather than ramp up a “dramatic increase in stimulus spending.”

Stocks came off their lows following the data release, with the Hang Seng Index
HSI, -0.44%
down 0.2% compared to its early loss of 0.6%. The Shanghai Composite Index
000001, +1.37%
swung to gains of 0.2% after trading down 0.3% at the start of the session.

HSBC’s flash PMI, based on initial responses from 85% to 90% of those surveyed, is the earliest available monthly indicator of Chinese manufacturing conditions.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.